Law

Commercial law; new U.C.C. cases

Article Abstract:

The concept of agreement is fundamental to the Uniform Commercial Code (UCC), and an agreement between the parties almost always can modify UCC rules. The phrase "course of dealing" in UCC 1-201(3)'s definition of "agreement" is especially important for commercial lawyers to understand, and the Tennessee appellate court ruling of Remco Equipment Sales, Inc v. Manz concerned this phrase. In re Raymond was a federal court case discussing security interest in individual retirement accounts under UCC 9.

Commercial law; letter-of-credit disputes

Article Abstract:

Issues regarding California's Lectrodryer v. SeoulBank ruling are discussed, in which the plaintiff sued the bank for unjust enrochment when it refused to honor the plaintiff's letter-of-credit. The ruling dealt with the appropriateness of allowing an equitable remedy, unjust enrichment, to cover letter-of-credit prepayments, and on the effect of an applicant's waiver of discrepancies on an issuing bank's freedom to continue insisting on strict documentary compliance.

Commercial law; a check forgery surprise

Article Abstract:

The 11th Circuit's ruling in the check forgery case of Arkwright Mutual Insurance Co. v. NationsBank S.A. (South) is discussed. UCC 4 allows customers to assume the risk of forgery so long as the bank still bears liability to exercise ordinary care. The court's ruling validates banking contracts resulting from checks paid over forged drawers' signatures from banks to their customers.